Using a Data Room As an Investment Tool

Investors will want all documents a startup makes available to them during due diligence. This may include legal documents, supplier and customer contracts, intellectual property information market research, financial performance. A virtual data room is an ideal place to store, manage and maintain this massive amount of information. It also allows you to keep track of who has access to the information and for how long.

It is important to include a download version of your financial model in the data room, regardless of whether you use Sturppy to create it or a different tool. This allows investors to verify your claims and assumptions without having to ask you for them again later.

The majority of investors would like to see your business plan for your company which includes a road map and forecasts for the next three years. This will give a clear idea of how you intend to expand and grow the business.

A summary of your main financials, which includes the operating expenses, revenue, and capital expenditures up to date, as in addition to projected future revenue and profits. This gives investors a complete overview of your financials from the day you started up to present day.

While you may already have presented a slide on the team members in your pitch deck and investors will likely have checked LinkedIn profiles, a specialized section to highlight the personal backgrounds and experiences of the founding team members can add further weight to their decision-making process. This is especially important if you’re looking to raise from institutional investors.

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